New Castle County schools may tax homes and other property differently

Eligible school boards may use separate school property tax rates for residential and non-residential property. This applies to districts entirely within New Castle County, except vocational-technical districts. The limits cover the district’s combined school property taxes. Boards may start separate rates or adjust their ratio through a school tax vote or a rate calculation after general reassessment. After reassessment, combined expected revenue must stay within the limit for that calculation. Boards must use county property classifications and charge the same rate within each class. Tax ballots must show each class’s proposed rate or share of the money to be raised. These provisions took effect upon enactment on August 5, 2026.

Districts already using separate rates may keep them within the law’s limits. This covers districts that adopted separate rates under House Bill 242, including the specific restriction on the New Castle County Vocational Technical District. Districts that adopted separate rates under House Bill 242 may keep the same or a lower ratio than in 2025–2026. Later adjustments must follow this law’s rules. The transition rules took effect on August 5, 2026. Compliance with the cap begins with the 2026–2027 tax year.

School boards may use a cushion of up to 10% for unpaid taxes and collection costs. These provisions cover school tax calculations, including certain districts that cross county lines. For voter-approved tax amounts or rates, the cushion covers unpaid taxes and collection costs; tax-setting rules also allow up to 10% for unpaid taxes. The annual-tax provision does not take effect if Senate Bill 322 passed both chambers by July 2, 2026, and became law. Otherwise, it takes effect upon enactment. Sections 5 and 7 took effect on August 5, 2026. Section 8 applies to the code version effective March 31, 2027. Section 6 has the Senate Bill 322 condition.